Suppose the reserve ratio is RR. Then,
A) required reserves = RR × excess reserves. B) required reserves = RR × loans.
C) required reserves = RR × deposits. D) required reserves = RR × actual reserves.
C
You might also like to view...
Today the U.S. dollar is worth 1.5 Canadian dollars. Because of changes in economic conditions, people come to believe that by the end of the month the U.S. dollar will be worth 1.2 Canadian dollars. This belief
A) increases the demand for U.S. dollars today. B) decreases the demand for U.S. dollars today. C) decreases the demand for Canadian dollars today. D) decreases the value of exports to Canada.
If the price elasticity of demand for a product equals 1, as its price rises the
A) quantity demanded increases. B) total revenue increases. C) quantity demanded does not change. D) total revenue does not change.